South Australia’s Renewable Energy Competitiveness

Steps in process:

Draft Report

Download: Inquiry-into-SA-renewable-energy-competitiveness-DRAFT-REPORT.pdf

In November 2021 the South Australian Productivity Commission (the Commission) was asked to undertake an inquiry into South Australia’s potential to secure a competitive advantage from renewable energy, what could be done to enhance any such advantage, and what economic opportunities it might enable.

Following stakeholder consultations and data analysis, the Commission published a draft report on 10 May 2022.

The report finds that South Australia has some significant natural advantages in terms of renewable power. It has low cost wind, good solar resources, and regions with some of the best combined wind and solar resources in the world.

South Australia saw substantial investment in wind farms in the 2000s and 2010s, as well as substantial household and business investment in rooftop solar and as a result by 2020/21 62 per cent of the State’s electricity was from renewable sources. Average wholesale prices went from being amongst the highest in the national electricity market to amongst the lowest.

However, the State’s ability to take advantage of these natural advantages has been limited by problems in the local electricity market which reduced the pass through of these lower prices to consumers, and from several adverse policy changes. This means that South Australia is not currently experiencing a competitive advantage due to renewable energy.

The draft report also seeks stakeholder feedback on potential approaches to addressing the barriers to South Australia’s renewable energy competitive advantage.

Next Steps

The Commission is particularly interested in experiences and evidence relevant to the terms of reference; the key findings identified in this draft report; and policy changes that could better position the State to secure a competitive advantage from renewable energy.

Every submission provided to the Commission will be considered and, unless it is identified as being confidential or is an abuse of process, will be published on our website.

The Commission encourages submissions to be made through the form below. You can also email us at sapc@sa.gov.au or post to us at GPO Box 2343, ADELAIDE SA 5001. Guidance in relation to making a submission is available here.